For investors

Tbilisi is considered the most common place for real estate investment in Georgia.

Along with economic development, the demand for real estate, in particular for newly built apartments, is increasing. Based on the principles of supply and demand in the market, the value of real estate keeps increasing trend from year to year. That is why the attention of big and small-budget investors has been directed to one of the most stable and profitable areas, which is real estate buying and selling.

2023 Summary ( Galt & Taggart  - Investment Research Data )

According to the Real Estate Market Review, 39,949 flats were sold in Tbilisi in 2023, which is a 7.0% year-on-year decrease compared to the record-high figures of 2022 (2022 real estate statistics were due to a large influx of migrants).

That is why, for the analysis of real statistics, the data should be compared with the 2021 indicator, it should be noted that the sales of apartments in 2023 are 7.7% higher.

However, the decrease in 2023 was entirely due to the 13.5% annual decrease in the secondary market, as the positive dynamics of sales in the primary market were maintained and an annual increase of 1.6% was recorded.

''The decline in demand in the secondary market mainly reflects the weakening of the effect of migrants and the stabilization of rents, which played an important role in the increased transactions in the secondary market in 2022. At the same time, the number of projects under construction in Tbilisi increased in 2023, which led to an increase in transactions in the primary market under conditions of sustained demand''.

Prices

In 2023, the dynamics of price growth were maintained. In addition, the annual growth rate of the apartment price in the primary market was twice as high as the price increase in the secondary market (+21.3% and +10.0% y/y, respectively). The prices have increased even more sharply since the beginning of 2022 until now. In particular, the prices of the primary market increased by 45.2%, which also exceeds the increase recorded in the secondary market (+30.7% for new and +17.5% for old apartments).

''The sharp increase in apartment prices was caused by increased construction costs and demand from migrants, although both of these indicators have stabilized at this stage. However, the trend of price growth has not changed. As a result, the minimum price of an apartment for sale in Tbilisi is currently up to $900/m2, while this figure was $600/m2 by the end of 2021''.

Market size

In 2023, 2.9 billion US dollars worth of apartments were sold in Tbilisi, which is a 9.9% year-over-year increase despite the reduced number of transactions. This increase was caused by the increase in prices in the primary market.

In 2023, the most expensive real estate was recorded in the Mtatsminda district, and most apartments were sold in the Saburtalo district.

The cost of 1m2 of residential real estate in the segment of apartments, according to districts of Tbilisi

The given table presents the median value of 1 m2 in the segment of newly built (completed) apartments, according to the districts of Tbilisi. The mentioned price is recognized as the selling price, the so-called Offer price.

Based on the mentioned data, the first quarter of the year is considered to be the best period for purchasing investment real estate, because at this time the prices are lower compared to the following quarters.

Residential real estate price index

Previous quarter = 100

Residential real estate price index

Corresponding quarter of previous year = 100

Source: National Statistical Service of Georgia